Applicability of gst on textile industries

HI Deepak, 

GST council has not yet come up with list of exemption, but if exemption is not provided to this industry then it would badly affect the growth of this Industry.

As far as closing stock is concern. Assessee is laible to pay GST at the time of supply. Further, they can take credit of inputs in terms of section 143 of Draft model law.

Regards

HI Deepak, 

GST council has not yet come up with list of exemption, but if exemption is not provided to this industry then it would badly affect the growth of this Industry.

As far as closing stock is concern. Assessee is laible to pay GST at the time of supply. Further, they can take credit of inputs in terms of section 143 of Draft model law.

Regards

The GST on Textile Industry is expected to be imposed in taking forward the intent of reducing exemptions and expanding the taxation base. It is hoped that the merit rate of 10-12 % would be applied with credit.

If the merit rate is applied then the VAT credit of average 5% wouldbe available. The central excise on yarn etc which is around 12.5 % on stocks in hand would also be available subject to evidecne that duty of excise has been paid.

The industry may after confirmation of the rate of duty ( expected to be in public domain by end of oct) start procuign with duty paid documents from amnufacturers directly of dealers registered under central Excise who would pass on the CED or CVD + SAD. In case credits are availed then the impact may not be subsntatial as far as cost is concerned.

Whether the indsutry which has been protected and working iuna an unorganised manner _ duly asisted by exemptions in the past can gear up and comply is the cause of concern.   

Thank experts